The Tokenomics behind CardWallet
We are sure most of you are familiar with the Cardano ecosystem, which has caught the eye of quite some users in the crypto space. Cardano has a whopping market cap of over $43.8 billion and there are several assets and applications being constantly created in the ecosystem as we speak.
If you are wondering as to how one can manage all these assets and interact with the application in the Cardano world, you have your answer in the form of our product — CardWallet.
CardWallet is your one-stop shop to buy and store cryptocurrencies in the most secure manner as it is Non-Custodial in nature and is built in its entirety to be user centric.
Being a community-driven product, it is important for us to facilitate user participation and engagement in a manner that incentivizes the user to interact with the product and explore all the cool features offered by us.
If you haven’t figured out what this article is going to be all about (apart from the title giveaway, of course!), then here we go (*drum rolls please*) — we are beyond excited to introduce our token CW and the tokenomics of the CW token.
So, what is the tokenomics behind the much anticipated CW token?
The tokenomics of the CW token would be split into 4 stages and each of these stages will enable certain incentives for the users based on their interaction with CardWallet. Let us take a closer look at these stages and what are the incentives in store for you.
Stage 1:
Centralized order routing is made available for users: Those who stake in the platform get access to the swap engine with 0 fees i.e they get token denominated rebates at the end of each month equivalent to the network and execution venue fees paid, to arrive at effective 0 fee equivalent.
25% of the net revenue is allocated towards the purchasing of tokens in the open market and then eventually burning them.
Stage 2:
Cardano SPO integration is enabled with the following features:
- There are attractive rebates for stakers in the form of extra tokens listed (as a result of the community vote). These rebates would be a variable % of the staking revenue.
- At the end of every month, the community votes for the best Staking Pool Operator (SPO). The project tokens are provided as a stake-weighted reward pool for delegates of the winning SPO staking through CardWallet facilities.
Decentralized order routing is enabled with a small liquidity mining reward pool (CW denominated) is set monthly to reward traders on a pro-rata volume-weighted basis.
Stage 3:
Yield optimization is enabled for users in the form of trustless staking across synthetics and other types of yield generating pools. The goal is to automate yield farming across a wide range of platforms thereby diversifying away the idiosyncratic protocol risk.
One of the most interesting aspects of community participation would be released in Stage 3.
Here are some community participation features available from Stage 3 onwards:
- Community can vote on proposals and create new proposals for the CardWallet DAO. Increased community participation will result in more rewards
- Introducing CWIP — CardWallet Improvement Proposals: CWIPs can be submitted by community members
- Voting for new token integrations
- Active community members across various social media platforms would be considered for rewards
DAO Voting is enabled at this stage.
Stage 4:
- Stakers get access to an exclusive Debit (prepaid) card.
- Stakers can claim ADA cashbacks on the application.
What is community-centric tokenomics?
Community-centric tokenomics gives power to the token holders/community, which reflects the true ethos of a decentralized product.
At CardWallet, one of our primary missions is to create engaging experiences for the user. As you can see in the attached image, there is 60% weightage provided to how the community is engaged as a whole with the product and 40% to personal engagement.
Personal engagement can be in the following forms:
- Trading, Staking, etc.
- Voting, Testing, Participating in competitions etc.
- Referring others to CardWallet
According to the collective actions of the community and the individual actions performed by a user, they would be rewarded in the form of rebates, early access to special features, participation in the governance, etc.
To create the best governance models and a truly decentralized system, it is imperative that the community have maximum participation in the system. That is why we have created tokenomics that is focused on community and is user-centric in the best way possible.
We believe that a fair distribution to the users will ensure the best use of our CW tokens. We are looking forward to all the exciting things that users can experience on CardWallet using their CW tokens.
*Disclaimer
- Described tokenomics is preliminary and might change due to market developments and community voting.
2. We will release separate articles about every feature later.
